REC Silicon officials, employees oppose proposed expansion of Butte-Silver Bow urban fire district
June 25, 2026 | Butte City , Silver Bow County, Montana
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Chairman Morgan opened a public hearing on council bill 2026-02 (Ordinance 2026-02), a proposal to amend chapter 2.16 of the Butte-Silver Bow Municipal Code to extend the fire department's jurisdictional boundary to include the Montana Connections industrial area.
Zach Osborne, director of fire services, told the council the proposal is intended to bring the industrial district into the urban fire boundary after its TIFAD agreement expired in 2022, and said the zone presents "high risk conditions for our first responders" that warrant inclusion and an equitable contribution toward fire protection services.
Opponents from REC Silicon stressed the financial impact the ordinance would impose on their facility. "The proposed expansion of the urban fire district and the tax structure it relies on is fundamentally flawed," said Zach Kelly, REC's director of operations. Kelly said REC maintains a specialized emergency response squad but still relies on public emergency services for full response and argued the company would be taxed disproportionately.
Kelly and other REC speakers cited figures they said underlie their objection: they told the council the Montana Connections Park previously paid about $106,847 for fire protection (citing the 2021 Butte-Silver Bow comprehensive financial report) and said the ordinance, as proposed, would require REC alone to pay "roughly 2 and a half times" that amount — about $250,000 — and to shoulder more than 70% of the department's budget increase. "This tax expansion as proposed may violate Montana law regarding equal protection and taxation," Kelly said, attributing that legal concern to outside counsel.
Matt Kiava, REC's engineering manager and a Butte resident, and employee Rich Henningkson echoed those concerns, warning that diverting the sums REC forecasts would constrain capital investment and could jeopardize local jobs following recent layoffs at the company.
The council closed the public hearing after opponents spoke; no council vote on Ordinance 2026-02 was taken at the June 24 meeting. Director Osborne's presentation and the public opposition statements are now part of the hearing record; any formal action on the ordinance would require a subsequent council agenda item and vote.
Background: Council Bill 2026-02 was presented as an amendment to chapter 2.16 (Fire Department) of the Butte-Silver Bow Municipal Code; the ordinance references specified subsections of section 2.16.0.02. The Montana Connections area was described in the hearing as an industrial district formerly subject to a TIFAD agreement that expired in 2022.
Next steps: The hearing record will be available for council consideration; the transcript shows the council closed the public hearing but did not vote on the ordinance during this session.
Zach Osborne, director of fire services, told the council the proposal is intended to bring the industrial district into the urban fire boundary after its TIFAD agreement expired in 2022, and said the zone presents "high risk conditions for our first responders" that warrant inclusion and an equitable contribution toward fire protection services.
Opponents from REC Silicon stressed the financial impact the ordinance would impose on their facility. "The proposed expansion of the urban fire district and the tax structure it relies on is fundamentally flawed," said Zach Kelly, REC's director of operations. Kelly said REC maintains a specialized emergency response squad but still relies on public emergency services for full response and argued the company would be taxed disproportionately.
Kelly and other REC speakers cited figures they said underlie their objection: they told the council the Montana Connections Park previously paid about $106,847 for fire protection (citing the 2021 Butte-Silver Bow comprehensive financial report) and said the ordinance, as proposed, would require REC alone to pay "roughly 2 and a half times" that amount — about $250,000 — and to shoulder more than 70% of the department's budget increase. "This tax expansion as proposed may violate Montana law regarding equal protection and taxation," Kelly said, attributing that legal concern to outside counsel.
Matt Kiava, REC's engineering manager and a Butte resident, and employee Rich Henningkson echoed those concerns, warning that diverting the sums REC forecasts would constrain capital investment and could jeopardize local jobs following recent layoffs at the company.
The council closed the public hearing after opponents spoke; no council vote on Ordinance 2026-02 was taken at the June 24 meeting. Director Osborne's presentation and the public opposition statements are now part of the hearing record; any formal action on the ordinance would require a subsequent council agenda item and vote.
Background: Council Bill 2026-02 was presented as an amendment to chapter 2.16 (Fire Department) of the Butte-Silver Bow Municipal Code; the ordinance references specified subsections of section 2.16.0.02. The Montana Connections area was described in the hearing as an industrial district formerly subject to a TIFAD agreement that expired in 2022.
Next steps: The hearing record will be available for council consideration; the transcript shows the council closed the public hearing but did not vote on the ordinance during this session.
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